Xerox Business Services LLC -- Moody's assigns Ba3 CFR to Xerox Business Services LLC; outlook stable

New York, November 08, 2016 -- Moody's Investors Service ("Moody's") assigned a Ba3 Corporate Family Rating ("CFR") and Ba3-PD Probability of Default Rating ("PDR") to Xerox Business Services LLC, an operating subsidiary of parent company, Conduent Inc. ("Conduent "). Concurrently, Moody's assigned a Ba2 rating to the company's proposed senior secured bank credit facility, comprised of a $1.45 billion term loan and a $750 million revolver, and assigned a Speculative Grade Liquidity ("SGL") rating of SGL-2. As part of Conduent's pending separation from its corporate parent Xerox Corporation ("Xerox") though a spin-off transaction, the proceeds of the new debt financing will be used principally to fund the payment of a dividend to Xerox, an asset purchase from Xerox, and the addition of cash to Conduent's balance sheet. Moody's expects Conduent to issue an additional $750 million of unsecured debt to complete the funding of the transaction in the near term. The ratings outlook is stable.

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